Image: from Shanaka Anslem Perera X @shanaka86
By Open Chronicle Staff with Agencies
Monday, March 2, 2026
DUBAI — Global energy markets were thrown into a state of “unprecedented volatility” on Monday as oil prices skyrocketed in response to the widening military conflict between the U.S., Israel, and Iran. Analysts warn that the effective paralysis of the Strait of Hormuz, the world’s most vital energy artery, could trigger a historic supply shock not seen since the 1970s.
A Vertical Spike in Prices
As financial markets opened for the first full day of trading since the escalation, Brent crude, the international benchmark, surged by as much as 13 percent, hitting a 14-month high of $82 per barrel. Although prices eased slightly toward midday, settling around $79, the jump reflects deep-seated fears that global crude supplies are no longer secure.
The spike comes despite an emergency decision by OPEC+ nations, including Saudi Arabia and Russia, to boost production to stabilize the market. However, traders remain skeptical that increased production can offset the physical closure of shipping lanes.
The “Hormuz Factor”
The center of the crisis is the Strait of Hormuz, a narrow 21-mile-wide waterway through which 20 percent of the world’s seaborne oil and liquefied natural gas (LNG) passes. While Tehran has not formally declared a total blockade, the Iranian Revolutionary Guard Corps (IRGC) has reportedly issued warnings to all commercial vessels to steer clear of the channel.
Satellite tracking data shows a massive “tanker pile-up” on both sides of the strait, with over 150 vessels carrying crude and LNG dropping anchor in open waters. Major shipping giants, including Maersk, have announced a total suspension of transit through the region, citing “insurmountable safety risks” and the withdrawal of insurance coverage by major maritime underwriters.
Global Economic Ripples
The impact of the energy shock is already being felt across the globe:
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Asian Markets: Heavily dependent on Gulf oil, Japan’s Nikkei 225 fell by 2.2 percent, while South Korean and Australian markets also saw significant retreats.
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Inflationary Fears: Economists warn that sustained prices above $90 per barrel will “rewrite inflation expectations,” potentially forcing central banks to halt planned interest rate cuts.
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Aviation and Logistics: Higher fuel costs, combined with widespread airspace closures over the Middle East, have led to a sharp drop in travel-related stocks.
Strategic Stalemate
President Donald Trump has suggested the conflict could last for several weeks, asserting that strikes will continue until Iran’s offensive capabilities are neutralized. Conversely, energy analysts at Wood Mackenzie suggest that if the disruption persists, oil could easily eclipse the $100 mark, acting as a “global tax” on consumers and businesses alike.
As the “Operation Epic Fury” campaign enters a critical phase, the world remains focused on the narrow waters of the Gulf, where the stability of the global economy now hangs in the balance.